Residential deposits rise again

According to the latest data from the State Bank, by the end of February, residential deposits in the banking system reached a record of nearly VND6.64 trillion, up 1.6% compared to the beginning of the year. Thus, after a decline in the first month of the year, residential deposits in the banking system have returned to an upward trend.

Meanwhile, deposits from organizations and businesses decreased sharply. This group deposited 6.52 million billion VND in the banking system, down 4.66% compared to the beginning of the year.

The decline in the corporate sector caused the total deposits flowing into the system as of February to slightly decrease, from more than VND13.17 trillion at the end of January to VND13.16 trillion.

This year, the mobilization rate of banks has slowed down significantly. According to financial reports, by the end of the first quarter, many banks had the highest growth rate of customer deposits in the first quarter of 2023, reaching 8-19%, but this year it only increased by less than 5%. The number of banks recording a decrease in deposit balance in the first three months of the year also increased sharply.

Recently, commercial banks have simultaneously increased savings interest rates, but the average is still low at around 5% per year.

Mr. Dinh Duc Quang, Managing Director of the Currency Trading Division, UOB Vietnam Bank, believes that the move to increase interest rates, in addition to following the trend of international markets, also aims to balance the yield of other investment channels in the market such as gold, stocks, etc. In addition, he forecasts that deposit interest rates will increase by 0.5-1% on different terms from the second half of this year, when credit recovers.

According to the State Bank of Vietnam, credit growth in the entire system as of the end of April was still below 2%, lower than the same period in previous years. Experts from UOB Vietnam commented that there was no problem with system liquidity and there was no concern about the need to mobilize funds at high interest rates or a reversal in monetary policy, that is, from the current loose state to tightening to control inflation and support exchange rates.

TB (according to VnExpress)

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